You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of $14$ percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Project X $($Videotapes of the Weather Report$)($$$30,000$ Investment$)$ Project Y $($Slow$-$Motion Replays of Commercials$)($$$50,000$ Investment$)$

Year Cash Flow Year Cash Flow

$1$ $ $15,0001$ $ $25,000$

$213,000218,000$

$314,000319,000$

$413,600421,000$

Calculate the profitability index for project X$.$

Note: Do not round intermediate calculations and round your answer to $2$ decimal places.

Calculate the profitability index for project Y$.$

Note: Do not round intermediate calculations and round your answer to $2$ decimal places.

Which project would you select based on the profitability index?

Project X

Project Y